What if the underlying drops? How to rollover profitably.

Last Monday, October 12, some of our members sold covered calls on Novavax (NVAX), strike price $113, expiry date today, October 16. (NVAX C 16OCT20 113.00) They received a premium income of $2.65 per share.

During the week, NVAX dropped to $111.42, so they lost $1.58 per share on the underlying.  Subtracting that loss from the premium income of  $2.65 per share received, our members gained $1.07 per share. ($2.65 minus $1.58 ) They could have done even better, much better! Something like that is possible anytime that the underlying security drops in price. It could still be done today. Here is how.

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me